How to Build a UPI App Like BHIM: Comprehensive Development Guide

In the ever-evolving digital landscape, the Unified Payments Interface (UPI) has revolutionized the way we handle transactions. Apps like BHIM (Bharat Interface for Money) have set the benchmark for seamless, real-time payments. 

If you’re considering developing a UPI app, this comprehensive guide will walk you through the process. As a payment software development company or an aspiring developer, understanding the intricacies of this process is crucial. 

Let’s dive into the steps needed to build a robust UPI app, leveraging the expertise of finance software developers and cutting-edge technologies like Ruby on Rails development.

Understanding UPI and Its Significance

Unified Payments Interface (UPI) is an instant real-time payment system developed by the National Payments Corporation of India (NPCI). 

It facilitates inter-bank transactions by instantly transferring funds between two bank accounts on a mobile platform. Key features of UPI include:

  • Instant Transfers: Immediate money transfer through mobile devices 24/7.

  • Multiple Bank Accounts: Linking multiple bank accounts in a single mobile application.

  • Security: Secure transactions with two-factor authentication.

  • Cost-Efficient: Low transaction costs make it accessible to a broader audience.

Connect with us for Fintech Development Needs

Trusted by companies like Plaid, Yodlee, Codat.

Key Steps to Develop a UPI App Like BHIM

1. Market Research and Planning

Before diving into development, conduct thorough market research. Understand the needs of your target audience, analyze competitors, and identify unique selling points (USPs). Planning involves outlining the features, creating user personas, and defining the app’s functionality.

2. Choosing the Right Technology Stack

Selecting the right technology stack is critical for your app’s performance and scalability. For backend development, Ruby on Rails development is a popular choice due to its simplicity and efficiency. Here’s a suggested technology stack:

  • Backend: Ruby on Rails

  • Frontend: React Native or Flutter for cross-platform compatibility

  • Database: PostgreSQL or MySQL

  • Payment Gateway: Integration with NPCI’s UPI infrastructure

  • Security: Implement SSL, two-factor authentication, and data encryption

3. Partnering with a Payment Software Development Company

Collaborating with an experienced payment software development company can streamline the development process. Their expertise ensures compliance with regulatory standards and the integration of secure payment gateways. They also bring valuable insights from previous projects, enhancing the app’s functionality and user experience.

4. Design and User Experience

A user-friendly design is crucial for the success of your UPI app. Focus on:

  • Intuitive Interface: Simple and easy-to-navigate interface.

  • Quick Onboarding: Simplified registration and onboarding process.

  • User Engagement: Features like transaction history, notifications, and customer support.

5. Development and Integration

Start with backend development using Ruby on Rails. Integrate the app with NPCI’s UPI infrastructure for seamless transactions. Key integration points include:

  • Bank APIs: For accessing and managing bank accounts.

  • UPI ID Creation: Enabling users to create and link their UPI IDs.

  • Transaction Management: Handling real-time transactions securely.

  • Security Features: Implementing robust security measures to protect user data.

6. Testing and Quality Assurance

Thorough testing is essential to ensure the app’s reliability and security. Conduct various types of testing:

  • Unit Testing: Testing individual components for functionality.

  • Integration Testing: Ensuring seamless integration with payment gateways and bank APIs.

  • Security Testing: Identifying and mitigating security vulnerabilities.

  • User Acceptance Testing (UAT): Gathering feedback from real users and making necessary improvements.

7. Launch and Maintenance

Once the app passes all testing phases, it’s ready for launch. Submit the app to relevant app stores and promote it through various channels. Post-launch, continuous maintenance and updates are vital to keep the app secure and user-friendly.

Connect with us for Fintech Development Needs

Trusted by companies like Plaid, Yodlee, Codat.

Leveraging Expertise in Finance Software Development

The success of your UPI app hinges on the expertise of finance software developers. Their deep understanding of financial systems, compliance requirements, and secure coding practices ensures that your app meets industry standards and provides a seamless user experience.

Beyond UPI: Additional Features to Consider

  • Bill Payments: Allowing users to pay utility bills directly from the app.

  • QR Code Payments: Enabling quick transactions through QR codes.

  • Donor Manager Software: With this donor manager software, integrating features for charitable donations and managing donor information.


Building a UPI app like BHIM requires a blend of technical expertise, thorough planning, and a deep understanding of the financial ecosystem. 

By partnering with a payment software development company and leveraging Ruby on Rails development, you can create a secure, efficient, and user-friendly UPI app. 

Whether you’re an established business or a startup, investing in a robust UPI app can position you at the forefront of the digital payment revolution.

If you’re ready to embark on this journey, our team of experienced finance software developers is here to help. Contact us today to turn your vision into reality!

Happy Finance App Development!!

Connect with us for Fintech Development Needs

Trusted by companies like Plaid, Yodlee, Codat.

Hire our Development experts.